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April 27, 2011

[Thai] Private sector has four proposals to ease border tensions

Thai businesspeople, fearing that the border clashes
between Thailand and Cambodia will harm bilateral trade and investment
if they drag on much longer, will make four proposals to the government
aimed at easing tensions.

The Joint PrivateSector Committee will make the
proposals to Deputy Prime Minister Trairong Suwankhiri soon, it
announced yesterday.

The first proposal is that the government
carefully consider closing border checkpoints as well as cutting the
supply of electricity to Cambodia. Second, concerned agencies and media
should be more careful with the release of information that could
intensify the conflict.

Third, the two countries should find ways
to compromise over the disputed territory to ensure further border
trade. Finally, economic and security issues should be clearly separated
to reduce tension or conflict between the two countries.

Payungsak
Chartsutipol, chairman of the Federation of Thai Industries, said the
business sector still had confidence that the border conflict will be
eased soon.

"People of the two nations are considered relatives. Nobody wants to see war or any fight," he said.

The
closure of checkpoints should be considered only at a certain point and
for a short period; otherwise, it would affect overall trading and
people's confidence, Payungsak said.

Despite the conflict,
private enterprises of Thailand and Cambodia have insisted on setting up
the ThaiCambodian Business Council to strengthen trade and investment
growth.

Thanit Sorat, secretarygeneral of the council and vice
chairman of the FTI, said private enterprises were conducting business
activities as usual although the tension has decreased investors'
confidence.

Bilateral trade is expected to grow continuously to
more than Bt85 bilฌlion this year from last year's Bt79.26 billion.
However, Thanit said prolonged fighting would not only affect investment
but also lower the value of bilateral trade between the two countries,
particularly crossborder trade.

For instance, Thanit pointed out
that Thai investment in Cambodia had shrunk considerably over the past
few years because of the border conflict. Only one project from Thailand
worth Bt30 million was approved by the Cambodia Investment Board last
year.

From August 1995 to June 2009, 81 Thai projects have been
launched in Cambodia with a combined investฌment value of Bt7.02
billion. Of these, nine projects are hotels worth Bt4.29 billion,
followed by agriculturalindustry schemes worth Bt2.34 bilฌlion, and
garmentindustry projects worth Bt221 million.

Bilateral trade
between Thailand and Cambodia was worth Bt79.26 billion last year. Of
that, Bt55.41 billion was from crossborder trade, of which exports from
Thailand were valued at Bt51.11 billion.

The flareup at the border
has hit the tourism industry hardest, as tourists have cancelled their
bookings to Cambodia. Eventually, it will directly harm inbound tourism
from Cambodia as well.

Thailand is projected to boost crossborder
trade with Cambodia by 8 per cent to Bt59 billion this year.
Crossborder trade with that country accounts for 7.09 per cent of the
Kingdom's total crossborder trade value.

Poonsak Kunudom,
counsellor for the Thai Trade Representative in Phnom Penh, said
bilateral trade between Thailand and Cambodia was still growing
normally.

The Commerce Ministry's Export Promotion Department has
no plans to cancel the Thailand Trade Exhibition 2011, which will be
held from May 1922 in Phnom Penh.